What are the risks?

When you are looking to purchase real estate in Morocco, whether it is a riad or villa in Marrakech’s medina or a plot in the suburbs, the most important thing to consider is the legal status: Is the property titled or is it a melkia (untitled)?

It is important to understand the difference. This distinction impacts your investment’s security, ability to resell the property, financing, and the possibility of building or renovating the property.

What is a titled property?

Titled property is a property that has been officially registered at the Moroccan Land Registry. The government issues a land title, or titre foncier, that clearly defines the boundaries of the property, its surface area, the owner, and any mortgages.

Benefits of owning a title property

• Secure and clear ownership
• Mortgage financing is available from Moroccan banks
• Resale faster and safer
• Legal ability to build, lease or mortgage
• Access to legal boundaries and cadastral maps

What is a Melkia property?

Melkia properties are not registered at the Land Registry. The ownership is determined by traditional documents. These are often religious or customary agreements (also known as adoul contracts) that have been passed down from generation to generation. These documents may have legal value, but they don’t provide the same protection as a title deed.

Melkia properties can be found in rural areas, old medinas or family estates.

The drawbacks of owning a Melkia property

• No official land title
• Shared ownership is common.
• Bank financing is not available
• Legal uncertainty
• Inaccurate property boundaries or cadastre

What are the risks of buying a Melkia property?

While melkia property can be cheaper, the risks may outweigh any benefits, particularly for non-residents and investors.

• Ownership disputes can arise when heirs are unknown or if legal claims are made later.
• The conversion to title status can take many years.
• Construction or renovation permits are difficult to obtain
• The purchase must be paid for in cash.
• Few buyers are willing take legal risks.

Can a Melkia property be titled?

It is possible to change a melkia into a title property by using a land titling process. The ANCFCC is responsible for this process.

It is important to note that:

• The full set of supporting documents, including adoul deeds and testimonies.
• Land surveyors are hired to determine the boundaries of a property.
• No legal opposition by third parties
• The process can take up to 12 months.